Intek Plastics Inc. announced Jan. 16 it has signed a letter of intent to acquire the jamb-liner business of Caldwell Manufacturing Co. Terms were not disclosed.
Intek already is the nation's leading manufacturer of jamb liners for wood windows, according to a news release.
Intek President and Chief Executive Officer Franz Altper said in a news release the deal will boost sales of Intek's jamb liners by 30 percent. The Hastings, Minn.-based firm had sales last year of $50 million.
The deal includes patent rights for Calwell's Tru-Lok locking mechanism, transfer of some capital assets and customer relationships. The transfer of patent rights was one aspect that made the acquisition attractive, said Jack Conway, Intek's director of sales and marketing.
``We're trying to provide technical engineered solutions and they have some clutch balance mechanisms that are attractive to us,'' said Jack Conway, Intek director of sales and marketing. Another reason for the deal is that the two former competitors had the same customer base, he said.
Rochester, N.Y.-based Caldwell will not lay off any workers, said marketing manager Douglas Wegman. He said the firm will redistribute production from its plant in Jackson, Miss., to the site in Williamsport, Md., where the jamb-liner business was located.
``Our strength is in the manufacture of hardware balances in jamb liners ... and that's where we want to grow our business,'' Wegman said.
Caldwell employs about 400, according to Wegman. The firm operates three plants in the United States and oversees Caldwell Hardware UK, a subsidiary in Coventry, England. Caldwell does not release sales figures.
Conway did not reveal the total number of lines Intek now will be operating. He said the acquisition will not require Intek to modify its facilities in Hastings, where the new product line will be made. There may be some workers added as a result of the deal, but ``nothing significant,'' Conway said. Intek currently employs about 350 at three plants.